Pre Market Commentary ...

Today,we expect a higher opening purely on the basis of positive global cues. The early gains may not sustain though amid worries over drought and its negative fallout. Valuations do not appear to be compelling either, especially in large caps. Small-caps and Mid-caps are risky at this stage but then there are proportionate gains to be made too. In short, we are in for a sideways trend with no clear bias.

All of a sudden, China seems to be hogging quite a bit of limelight with the dirty word “bubble” being associated with its stock market. On Wednesday, the Shanghai Composite slipped into the so-called official bear market territory. Today, the benchmark Chinese index is up though, and so are other key Asian markets. Merrill Lynch says China’s stocks are set to rebound from this month’s plunge. Whether that happens or not only time will tell. Don’t get too carried away by any major movements in stocks, be it China or India or any other market. After a strong rally over the past few months, any market is bound to turn volatile.